The firm will continue to sell laser printers and will also focus on its imaging software and document management services.

Squeezed inks

Lexmark has effectively been squeezed out of a declining business.

Sales of inkjet equipment are falling as users increasingly post their pictures to social media sites rather than print them out. What remains of the market is dominated by HP, Canon and Epson which account for 90% of inkjet sales worldwide, according to data from Reuters.

Lexmark had already made moves to shift out of the industry, axing 625 posts in its consumer inks division in January.

At the end of last year it had a total of 13,300 workers.

While the latest move is designed to save costs in the long run, Lexmark has warned that it will have to absorb a $160m restructuring charge involved with the move.

Even so, its shares closed up by 13.73% at $21.62, in New York trade on Tuesday.